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Analysis of The Relationship Between Board of Directors and Performance: A Research on Nasdaq Technology Companies

Year 2020, Volume: 9 Issue: 3, 2081 - 2095, 30.09.2020
https://doi.org/10.15869/itobiad.774943

Abstract

Board of directors is frequently examined in corporate governance literature. The main motivation for conducting these studies is to determine the structure of the board of directors that will positively affect both the financial and non-financial activity results of the business. In the studies, the relationship between the variables related to the structure of the board of directors and the performance variables is analyzed, as well as the variables showing the risk level of the business activities are analyzed. Although there are many studies examining the relationship between variables related to the structure of the board of directors and performance results, there is no consensus. For this reason, researchers agree on this view “one size does not fit all”, which explains that there will not be one correct structure for all businesses. These opinion studies paved the way for it to be done on a country, region, and sector basis. In this study, the relationship between the variables related to the board structure of technology companies in the Nasdaq-100 index and the return on assets (ROA), the return on equity (ROE), were analyzed. As a result of the analysis, the positive and significant relationship between the ratio of female members in the board of directors and the average age of the board of directors was determined with performance variables. There is a negative and significant relationship between the number of board members and performance variables. According to these results, having female members and experienced members without increasing the number of board members in technology companies contributes positively to financial performance. 

References

  • Kaynakça Baysinger, B. D., & Butler, H. N. (1985). Corporate governance and the board of directors: performance effects of changes in board composition. Journal of Law, Economics, &Organization, 101-124.
  • Bhatt, R. R., & Bhattacharya, S. (2015). Board structure and firm performance in Indian IT firms. Journal of Advances in Management Research, 232-248.
  • Bonn, I. (2004). Board Structure and Firm Performance: Evidence from Australia. Journal of Management and Organization, 14-24. Bonn, I., Yoshikawa, T., & Phan , P. H. (2004). Effects of Board Structure on Firm Performance: A Comparison Between Japan and Australia. Asian Business and Management, 105-125.
  • Brogi, M., & Lagasio, V. (2018). Do bank boards matter? A literature review on the characteristics of banks' Board of Directors. International Journal of Business Governnace and Ethics.
  • Carter, D. A., D'souza, F., Simkins, B. J., & Simpson, W. G. (2010). The Gender and Ethic Diversity of US Boards and Board Committees and Firm Financial Performance. Corporate Governance: An International Review, 396-414.
  • Carter, D., Simkins, B. J., & Simpson, W. G. (2003). Corporate governance, board diversity and firm performance. The Financial Review, 33-53.
  • Dalton, D. R., Daily, C. M., Ellstrand, A. E., & Johnson, J. L. (1998). Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 269-290.
  • De Andres, P., Azofra, V., & Lopez, F. (2005). “Corporate boards in OECD countries: size, composition, functioning and effectiveness. Corporate Governance: An International, 197-210.
  • Donaldson, L., & Davis, J. H. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management, 49-64.
  • Ghosh, S. (2006). Do board characteristics affect corporate performance? Firm-level evidence for. Applied Economics Letters, 435-443.
  • Gill, S. (2013). Rethinking the primacy of board efficacy for governance: evidence from India. Corporate Governance, 99-129. Hagendorff, J., & Keasey, K. (2012). The value of board diversity in banking: evidence from the market for corporate control. The European Journal of Finance, 41-58.
  • Harrson, J., & Freeman, R. E. (1999). Stakeholders, Social Responsibility and Performance: Emprical Evidence and Theoretical Perspectives. The Academy of Management Journal, 479-485.
  • Jackling, B., & Johl, S. (2009). Board Structure and Firm Performance:Evidence from India’s Top Companies. Corporate Governance: An International Review, 492-509.
  • Kumar, N., & Singh, J. P. (2013). Effect of board size and promoter ownership on firm value:some empirical findings from India. Corporate Governance: The International Journal of Business in Society, 88-98.
  • Marinova, J., Plantenga, J., & Remery, C. (2016). Gender diversity and firm performance: evidence from Dutch and Danish boardrooms. The International Journal of Human Resource Management , 1777-1790.
  • Ramdani, D., & van Witteloostuijn, A. (2010). The impact of board independence and CEO duality on firm performance: A quantile regression analysis for Indonesia, Malaysia, South Korea And Thailand. British Journal of Management, 607-627.
  • Simpson, W. G., Carter, D., & D'Souza, F. P. (2015). What Do We Know About Women on Boards? Journal of Applied Finance, 1-13. Vikipedi. (2020). Nasdaq. Retrieved from tr.wikipedia.org: tr.wikipedia.org/wiki/Nasdaq
  • Weil, G. (2015). International comparison of selected corporate governance. Retrieved from www.weil.com: www.weil.com/~/media/files/pdfs/

Yönetim Kurulu Yapısı ile Performans İlişkisinin Analizi: Nasdaq Teknoloji Şirketleri Üzerine Bir Araştırma

Year 2020, Volume: 9 Issue: 3, 2081 - 2095, 30.09.2020
https://doi.org/10.15869/itobiad.774943

Abstract

İşletmelerin yönetim kurulları kurumsal yönetim literatüründe sıklıkla incelenmektedirler. Bu çalışmaların yapılmasındaki temel motivasyon işletmenin hem finansal hem de finansal olmayan faaliyet sonuçlarına olumlu etki edecek yönetim kurulu yapısının tespit edilmesidir. Çalışmalarda yönetim kurulu yapısına ilişkin değişkenler ile performans değişkenleri arasındaki ilişki analiz edilmekle beraber işletme faaliyetlerinin risk seviyesini gösteren değişkenler de analiz edilmektedir. Yönetim kurulu yapısına ilişkin değişkenler ile performans sonuçları arasındaki ilişkiyi inceleyen çok sayıda çalışma olmasına karşın bu çalışmalarda farklı sonuçlar elde edildiği görülmektedir. Bu sebeple araştırmacılar, tüm işletmeler için tek bir doğru yapının olmayacağını anlatan “aynı beden herkese uymaz”(one size does not fit all) görüşünde birleşmektedirler. Bu görüş çalışmaları, ülke, bölge ve sektör bazlı olarak yapılmasının önünü açmıştır. Bu çalışmada Nasdaq-100 endeksinde yer alan teknoloji şirketlerinin yönetim kurulu yapısına ilişkin değişkenler ile performans değişkenleri olan aktif kârlılık oranı (ROA), özkaynak kârlılık oranı (ROE) arasındaki ilişki analiz edilmiştir. Analizler sonucunda yönetim kurulundaki kadın üye oranı değişkeni ile yönetim kurulunun ortalama yaşı değişkenlerinin, performans değişkenleri ile pozitif yönlü ve anlamlı ilişkisi tespit edilmiştir. Yönetim kurulu üye sayısı ile performans değişkenleri arasında ise negatif yönlü ve anlamlı ilişki bulunmaktadır. Bu sonuçlara göre teknoloji şirketlerinde yönetim kurulu üye sayısı artırılmadan kadın üyelere ve tecrübeli üyelere daha fazla yer verilmesi finansal performansa olumlu katkı sağlamaktadır. 

References

  • Kaynakça Baysinger, B. D., & Butler, H. N. (1985). Corporate governance and the board of directors: performance effects of changes in board composition. Journal of Law, Economics, &Organization, 101-124.
  • Bhatt, R. R., & Bhattacharya, S. (2015). Board structure and firm performance in Indian IT firms. Journal of Advances in Management Research, 232-248.
  • Bonn, I. (2004). Board Structure and Firm Performance: Evidence from Australia. Journal of Management and Organization, 14-24. Bonn, I., Yoshikawa, T., & Phan , P. H. (2004). Effects of Board Structure on Firm Performance: A Comparison Between Japan and Australia. Asian Business and Management, 105-125.
  • Brogi, M., & Lagasio, V. (2018). Do bank boards matter? A literature review on the characteristics of banks' Board of Directors. International Journal of Business Governnace and Ethics.
  • Carter, D. A., D'souza, F., Simkins, B. J., & Simpson, W. G. (2010). The Gender and Ethic Diversity of US Boards and Board Committees and Firm Financial Performance. Corporate Governance: An International Review, 396-414.
  • Carter, D., Simkins, B. J., & Simpson, W. G. (2003). Corporate governance, board diversity and firm performance. The Financial Review, 33-53.
  • Dalton, D. R., Daily, C. M., Ellstrand, A. E., & Johnson, J. L. (1998). Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 269-290.
  • De Andres, P., Azofra, V., & Lopez, F. (2005). “Corporate boards in OECD countries: size, composition, functioning and effectiveness. Corporate Governance: An International, 197-210.
  • Donaldson, L., & Davis, J. H. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management, 49-64.
  • Ghosh, S. (2006). Do board characteristics affect corporate performance? Firm-level evidence for. Applied Economics Letters, 435-443.
  • Gill, S. (2013). Rethinking the primacy of board efficacy for governance: evidence from India. Corporate Governance, 99-129. Hagendorff, J., & Keasey, K. (2012). The value of board diversity in banking: evidence from the market for corporate control. The European Journal of Finance, 41-58.
  • Harrson, J., & Freeman, R. E. (1999). Stakeholders, Social Responsibility and Performance: Emprical Evidence and Theoretical Perspectives. The Academy of Management Journal, 479-485.
  • Jackling, B., & Johl, S. (2009). Board Structure and Firm Performance:Evidence from India’s Top Companies. Corporate Governance: An International Review, 492-509.
  • Kumar, N., & Singh, J. P. (2013). Effect of board size and promoter ownership on firm value:some empirical findings from India. Corporate Governance: The International Journal of Business in Society, 88-98.
  • Marinova, J., Plantenga, J., & Remery, C. (2016). Gender diversity and firm performance: evidence from Dutch and Danish boardrooms. The International Journal of Human Resource Management , 1777-1790.
  • Ramdani, D., & van Witteloostuijn, A. (2010). The impact of board independence and CEO duality on firm performance: A quantile regression analysis for Indonesia, Malaysia, South Korea And Thailand. British Journal of Management, 607-627.
  • Simpson, W. G., Carter, D., & D'Souza, F. P. (2015). What Do We Know About Women on Boards? Journal of Applied Finance, 1-13. Vikipedi. (2020). Nasdaq. Retrieved from tr.wikipedia.org: tr.wikipedia.org/wiki/Nasdaq
  • Weil, G. (2015). International comparison of selected corporate governance. Retrieved from www.weil.com: www.weil.com/~/media/files/pdfs/
There are 18 citations in total.

Details

Primary Language Turkish
Subjects Business Administration
Journal Section Articles
Authors

Burcu Gurol 0000-0001-9974-2351

Publication Date September 30, 2020
Published in Issue Year 2020 Volume: 9 Issue: 3

Cite

APA Gurol, B. (2020). Yönetim Kurulu Yapısı ile Performans İlişkisinin Analizi: Nasdaq Teknoloji Şirketleri Üzerine Bir Araştırma. İnsan Ve Toplum Bilimleri Araştırmaları Dergisi, 9(3), 2081-2095. https://doi.org/10.15869/itobiad.774943

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